Nickel-Cobalt
NORNICO
Metallica’s flagship project is the 100% NORNICO Nickel-Cobalt Project located in North Queensland between the townships of Mt Garnet and Greenvale, where the Company aims to develop a profitable long-life mine.
In April 2010, Metallica finalised the purchased the Greenvale Mine site tenements from Straits Resources Limited. The Greenvale Mine operated for 18 years from 1974 to 1992, mining ore from a 3km2 area, that produced 40 million tonnes (Mt) of Nickel laterite ore grading 1.56%Ni and 0.12%Co, making it the largest high grade nickel mine in Australia. These resources have now been added to the NORNICO Project.
The NORNICO Project enjoys excellent access to roads and transport infrastructure, including port facilities just 140 kilometers away by road.
Metallica is pursuing a two stage development strategy for NORNICO with an internal Scoping Feasibility Study progressing for Stage 1 on establishing a modest processing operation of 180,000tpa in size at the former Greenvale Mine site using selected high grade Ni & Co feed primarily sourced from the Greenvale deposit and blended with cobalt and scandium rich nickel laterite ores trucked from the Lucknow (6km) and Kokomo (55km) deposits.
It is envisaged, subject to feasibility studies, that within several years of the commencement of NORNICO Stage1 operation, that mining and processing could be scaled up to a much larger size, in the order of a 700,000 tonnes to 1Mtpa operation (NORNICO Stage 2) with its own acid generation and power plant and projection of over 10,000 Ni metal with substantial Co (and possibly Sc) credits.
Exploration work continues on the Greenvale and Lucknow tenements with the aim of defining high grade mineralisation to a Measured and Indicated Resources status suitable for mining studies.
The current combined NORNICO resource base is approximately 76 million tonnes @ 0.80% Ni and 0.06% Co (608 Kt Ni and 49 Kt Co contained). This resource base will be further enhanced with an updated resource estimate expected in mid 2010.
|
Totals |
Tonnes |
Ni (%) |
Co (%) |
Fe (%) |
Mg (%) |
In-situ |
In-situ |
|
|
(Mt) |
|
|
|
|
Ni metal |
Co Metal |
|
Measured |
10.15 |
0.95 |
0.08 |
12.81 |
7.13 |
96,375 |
8,140 |
|
Indicated |
28.90 |
0.76 |
0.07 |
16.03 |
5.88 |
219,806 |
21,438 |
|
Inferred |
37.26 |
0.78 |
0.05 |
13.40 |
4.92 |
292,408 |
19,917 |
|
Overall total |
76.31 |
0.80 |
0.06 |
14.32 |
6.10 |
608,589 |
49,494 |
LUCKY BREAK
The Lucky Break nickel project, located 140km west of Townsville is a joint venture between Metals Finance Ltd (ASX:MFC) and Metallica. Metallica holds two granted Mining Leases (ML 10324 and 10332). Both MFC and MLM hold their Joint Venture interests through wholly owned subsidiaries.
MFC is the manger of the Lucky Break nickel project and is responsible for all development costs as part of its earn-in agreement. Metallica is free carried and will receive its share of theoperationg surplus once the project is in operation and MFC has recouped its capital investemtns an then sharing cash flow thereafter.
The project is to be developed and brought into nickel production at no extra cost to Metallica and hence does not dilute shareholder equity.
The other key advantage is that it provides Metallica with significant hydrometallurgical operation experience and know-how, ahead of the proposed larger scale NORNICO Stage 1 development at Greenvale.
MFC recently completed a revised internal Feasibility Study, incorporating revisions in scale to approximately 60ktpa higher grade nickel ore processing operation.
The proposed nickel operating is of modest size, with nickel production in the order of 700 tonnes nickel metal per annum.
The Lucky Break project is 50% MFC and 50% Metallica Minerals.
MFC is the manger of the Lucky Break nickel project and is responsible for all development costs as part of its earn-in agreement. Metallica is free carried and will receive its share of theoperationg surplus once the project is in operation and MFC has recouped its capital investemtns an then sharing cash flow thereafter.
The project is to be developed and brought into nickel production at no extra cost to Metallica and hence does not dilute shareholder equity.
The other key advantage is that it provides Metallica with significant hydrometallurgical operation experience and know-how, ahead of the proposed larger scale NORNICO Stage 1 development at Greenvale.
MFC recently completed a revised internal Feasibility Study, incorporating revisions in scale to approximately 60ktpa higher grade nickel ore processing operation.
The proposed nickel operating is of modest size, with nickel production in the order of 700 tonnes nickel metal per annum.
The Lucky Break project is 50% MFC and 50% Metallica Minerals.
